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The Telangana Real Estate Regulatory Authority (TGRERA) has fined Bhuvanteza Infrastructures LLP INR 14.9 lakh for failing to register its 'Aura Velimala Phase 1' project in Sangareddy district. The project, which promised delivery by December 2023, remains only 20% complete, leaving 62 buyers in distress. TGRERA found the developer in violation of Sections 3 and 4 of the RERA Act, which require registration prior to sales or marketing. The authority ordered full refunds to buyers with 11% annual interest and mandated an immediate halt to all sales and marketing of the project. Many buyers, who had taken housing loans, were also denied promised rental payments. TGRERA warned of stricter penalties for continued non-compliance. The ruling reinforces the regulator's commitment to protecting homebuyers, ensuring transparency, and enforcing legal standards in Telangana's real estate sector.
In a stringent regulatory action, the Telangana Real Estate Regulatory Authority (TGRERA) has imposed a penalty of INR 14.9 lakh on Bhuvanteza Infrastructures LLP for non-registration of its residential project, 'Aura Velimala Phase 1', located in Velimala village of Sangareddy district. The decision was taken following a series of complaints by homebuyers who had invested in the project but were left in distress due to its stalled progress and lack of regulatory compliance. Advertisement
The developer was found in violation of Sections 3 and 4 of the Real Estate (Regulation and Development) Act, 2016, which mandate that all real estate projects exceeding 500 square metres or involving more than eight apartments must be registered with RERA before any advertisement, booking, or sale.
TGRERA, while passing its order earlier this week, also instructed Bhuvanteza Infrastructures LLP to refund all amounts collected from 62 buyers, along with 11% annual interest. The buyers had signed unregistered agreements of sale and were assured possession by December 2023. However, as of mid-2024, only around 20% of the construction work was reported to be completed, significantly lagging behind schedule.
Many of the buyers had taken housing loans, while some were relying on the promised rent payment to manage their finances during the delay period. TGRERA observed that the builder failed to make those rental payments, exacerbating the financial burden on the buyers. The developer also did not respond to repeated notices or participate in the regulatory proceedings.
The authority clarified that the ongoing marketing or sale of any units in the project must be halted immediately until due registration is completed. The regulator further warned that continued non-compliance with its directives could result in more severe penalties, including prosecution under the provisions of the RERA Act.
It was noted that buyers had been misled into signing agreements without RERA registration, which not only violates the law but also deprives them of statutory protection under the Act. TGRERA has reinforced that such actions from developers undermine the trust and structure of the real estate market.
According to public records, Bhuvanteza Infrastructures LLP had never filed for registration of the project despite collecting funds and beginning construction. The authority's intervention now aims to restore confidence among homebuyers and send a clear message to errant developers operating outside the legal framework.
By penalising the developer and compelling refunds with interest, the authority has reaffirmed its commitment to protecting homebuyers from fraudulent practices and project delays. The ruling also encourages transparency and integrity in an industry where trust is often hard-earned and easily lost. This action is expected to resonate across the sector, prompting developers to adhere to RERA guidelines and deliver on their commitments in a timely and lawful manner.
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